Boroughs which started out with lower prices fared better. Bexley's average house price was up 4.5 per cent to £363,082. Waltham Forest was the only area to set a new peak average price, of £464,872.

But overall the cheapest third of London’s borough still saw a fall in prices, down 0.5 per cent on a year ago.

Transactions in London were also down five per cent in the three months to January 2018.

This contrasted with the national picture, as annual house prices for the UK grew 2.5 per cent excluding London and the South West. But with the dip in the capital and the Home Counties included, the growth was only 0.6 per cent, compared to 0.7 per cent last year.

Oliver Blake, managing director of Your Move and Reeds Rain estate agents, said: "When examining the bigger picture, house prices are steadily balancing to meet the needs of house buyers which is welcome news for those looking to take their first steps onto the property ladder."

"The industry needs to work together to provide a long-term solution to increase movement within the market," he said. "By building more homes and introducing more initiatives for each stage of the property lifecycle we should start to see more choice for first time buyers, second steppers and last-time buyers.”